Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Equity Bottom-Up

<div><ul><li>Strong Nvidia beat reinforces strength in demand environment for AI. </li><li>Nvidia’s 3QFY26 results materially exceeded consensus expectations, with revenue of $57.0 billion (+22% Q/Q, +62% Y/Y) versus Street estimates of ~$54.9 billion and adjusted EPS of $1.30 versus Street estimates of $1.25.</li><li>Data center revenue of $51.2 billion handily surpassed consensus of ~$49.0 billion, accounting for 90% of total revenue and underscoring sustained enterprise AI adoption.</li></ul></div>

Strong Nvidia beat reinforces strength in demand environment for AI. Nvidia’s 3QFY26 results materially exceeded consensus expectations, with revenue of $57.0 billion (+22% Q/Q, +62% Y/Y) versus Street estimates of ~$54.9 billion and adjusted EPS of $1.30 versus Street estimates of $1.25.Data center revenue of $51.2 billion handily surpassed consensus of ~$49.0 billion, accounting for 90% of total revenue and underscoring sustained enterprise AI adoption.

Nvidia Earnings Read-Across; Now for Something (Very) Different!

<ul><li>Massive AI infrastructure boom. There is a massive data center investment cycle driven by artificial intelligence (AI). </li><li>The global AI infrastructure market will surge from $88 billion in 2025 to $198 billion by 2030 (18% CAGR), with the independent AI cloud segment increasing significantly from $25 billion to $170 billion (48% CAGR).</li><li> The shift to inference is a significant driver, which, as a share of workloads (versus training), is expected to shift from 20% to 80%, creating a massive opportunity for specialized providers over general-purpose hyperscalers</li></ul>

Massive AI infrastructure boom. There is a massive data center investment cycle driven by artificial intelligence (AI). The global AI infrastructure market will surge from $88 billion in 2025 to $198 billion by 2030 (18% CAGR), with the independent AI cloud segment increasing significantly from $25 billion to $170 billion (48% CAGR). The shift to inference is a significant driver, which, as a share of workloads (versus training), is expected to shift from 20% to 80%, creating a massive opportunity for specialized providers over general-purpose hyperscalers

Thematic (Sector/Industry)

<ul><li>Methodology. We reviewed 50 under-covered, AI-involved public companies (~$2.7 billion average market cap; about five analysts each) and their respective one-year market-cap changes.</li><li>We then mapped them to one or more of 11 AI application areas.</li><li>We also assigned each company a subjective “AI Centricity” score (1 to 10 scale) based on each company’s level of focus on AI. </li></ul>

Methodology. We reviewed 50 under-covered, AI-involved public companies (~$2.7 billion average market cap; about five analysts each) and their respective one-year market-cap changes.We then mapped them to one or more of 11 AI application areas.We also assigned each company a subjective “AI Centricity” score (1 to 10 scale) based on each company’s level of focus on AI. 

AI Industry Primer A Survey of 50 Under-Covered Companies in Artificial Intelligence (AI)

Netherlands

Nebius Group is a technology company providing infrastructure and services to AI builders globally. The group's core business, Nebius, is an AI-centric cloud platform built for AI workloads. Nebius Group serves customers worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Nebius Group (NBIS US)

Nvidia Earnings Read-Across; Now for Something (Very) Different!

Nvidia’s 3QFY26 results materially exceeded consensus expectations, with revenue of $57.0 billion (+22% Q/Q, +62% Y/Y) versus Street estimates of...

Water Tower Research

NBIS: "Neo" Of the Cloud?

. We also expect the shift from training to inference business to be positive for the margins of infrastructure providers like Nebius.

Water Tower Research

AI Industry Primer A Survey of 50 Under-Covered Companies in Artificial Intelligence (AI)

Methodology. We reviewed 50 under-covered, AI-involved public companies (~$2.7 billion average market cap; about five analysts each) and their...

Water Tower Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)